interim results 2015 - geretail.com · • baby products, nutrition & health, beauty skin care...
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3
Lifestyle Center Update
Continue to implement the “comprehensive lifestyle concept”
− Opened 5 brand new
lifestyle centers in the past
12 months with
encouraging performances
Nanjing Jiangning
Nantong Danyang KunshanYancheng Julonghu
4
Yancheng JulonghuLifestyle Center
OFA Breakdown
5.7%Supermarket
63.9%New style Merchandise
23.3%F&B
7.1%Leisure & Children’s Playground
GFA 110,848 sq.m.
OFA 82,748 sq.m.
Opening date Sept 2014
1H2015 GSP RMB164.5M
EBITDAR RMB10.4M
No. of brands 420
No. of self-
controlled brands17
5
Nantong Lifestyle Center
OFA Breakdown
9.9%Supermarket
77.6%New style Merchandise
11.4%F&B
1.1%Leisure & Children’s Playground
GFA 94,700 sq.m.
OFA 46,029 sq.m.
Opening date Dec 2014
1H2015 GSP RMB161.9M
EBITDAR RMB(7.1)M
No. of brands 344
No. of self-
controlled brands15
6
DanyangLifestyle Center
OFA Breakdown
8.5%Supermarket
71.5%New style Merchandise
19.0%F&B
1.0%Leisure
GFA 52,976 sq.m.
OFA 40,500 sq.m.
Opening Date Jan 2015
1H2015 GSP RMB84.6M
EBITDAR RMB(7.8)M
No. of brands 268
No. of self-
controlled brands9
7
KunshanLifestyle Center
OFA Breakdown
10.1%Supermarket 47.7%
New style Merchandise22.7%
F&B
19.5%Leisure & Children’sPlayground
GFA 118,500 sq.m.
OFA 79,779 sq.m.
Opening date Jan 2015
1H2015 GSP RMB141.9M
EBITDAR RMB(8.8)M
No. of brands 331
No. of self-
controlled brands16
8
Nanjing JiangningLifestyle Center
8.0%Supermarket
63.7%New style Merchandise
24.2%F&B
4.1%Leisure & Children’sPlayground
OFA Breakdown
GFA 144,710 sq.m.
OFA 106,331 sq.m.
Opening date Jul 2015
July 2015 GSP RMB37.1M
No. of brands 426
No. of self-
controlled brands23
9
Integrate the interactive and fun store design and merchandise layout with
family and life experience
Lifestyle Center Update
10
Enrich value-for-money and distinctive merchandise offering
− Enlarged the portfolio of controllable merchandise from 47 to 64 brands
− 1H2015 GSP RMB147.1 million, 23.0% YOY
− 1H2015 gross profit RMB50.0 million, 32.9% YOY
Lifestyle Center Update
List of key brands :
International Famous
Household & children
Multi-brands Store
Casual wear 0
50
100
150
1H2014 1H2015
147.1
119.6R
MB
’M
Controllable merchandise GSP
11
Lifestyle Center Update
WONDERPLACE
1H2015•GSP of RMB3.9 million
•2 new stores opened and reached a total of 3 storesNanjing Golden Eagle Zhujiang store (opened in Dec 2014)
Nanjing Golden Eagle Xinjiekou store (opened in May 2015)
Nanjing Golden Eagle Jiangning store (opened in July 2015)
•Cooperate with third-partyShenzhen Mission Hills store (open in 2H2015)
Nanjing Wonder City store (open in 2H2015)
Lifestyle Center Update
POP MART
7.6
25.8
0
5
10
15
20
25
30
1H2014 1H2015
Total SalesRMB million
1H2015
•Total sales grew rapidly to RMB25.8 million
•17 stores, after 4 stores opened in 1H2015Danyang Golden Eagle store
Xuzhou Golden Eagle store
Yancheng Golden Eagle store
Nanjing Jiangning Golden Eagle store
13
Lifestyle Center Update
1H2015
•Total sales grew rapidly to RMB81.4 million
•20 stores, after 7 stores opened in 1H2015Kunshan Golden Eagle store
Nanjing Xianlin Golden Eagle store
Danyang Golden Eagle store
Changzhou Golden Eagle store
Taizhou Golden Eagle store
Benbu Wanda Plaza store
Changzhou Wanda Plaza store
Mr. Pizza
23.9
81.4
0
25
50
75
100
1H2014 1H2015
Total SalesRMB million
14
Automobile
Lifestyle Center Update
1H2015 GSP RMB152.7 million
Chain operation of automobile integrated servicesprovides extensive value-added services to VIP customersVolkswagen 4S shopInternational Luxury Automobile SalesPremium Second Hand Car DealershipInspection ServicesAutomobile Repair, Maintenance and ModificationCar BeautyRoad Rescue
15
Lifestyle Center Update
Continue to implement the “comprehensive lifestyle concept”
− Continue to enrich the lifestyle components in existing stores
− G-mart, one of the Group’s lifestyle star businesses, generated
RMB418M GSP in 1H2015, 19.4% YOY
16
Continue to develop O2O business model
− Effectively utilize Omni-channel marketing for PR activities and store
opening pre-heats
Lifestyle Center Update
17
Lifestyle Center Update
− “goodee mobile App” registered
over 3.2 million downloads which
with various enhanced functions to
up lift customers’ shopping
experience and convenience
− 970,000 VIP customers connected
their E-VIP cards with the App
− newly launched functions, including
movie ticket booking (看电影), F&B
information and merchandise
search
Movie Ticket
Booking
Merchandise
Search
F&B
Information
Discount
Coupons
Car Parking
E-VIP Card
3.2 million Downloads
Continue to develop O2O business model
1.0 million Active users
18
Continue to develop O2O business model
Lifestyle Center Update
Launched on 20 May 2015
Launching inSeptember 2015
Launched on 18 August 20152 stores opened: Xinjiekou & Jiangning, 400
sq.m. The soft launch of “金鹰购 Jinying.com”• Effectively combined the functions of cross-border e-commerce and reward points redemption.• Baby products, nutrition & health, beauty skin care cosmetics and imported food from US, Europe, Australia, New
Zealand, Japan and Korea.• First 3 days operation
GSP: RMB2.1 million in total, RMB1.5 million online and RMB0.6 million in store
ASP: RMB513 for Xinjiekou Store and RMB454 for Jiangning Store
The 2 experience stores brought extra 60% traffic to G-Mart
APPs Website
Experience Store
19
1
1
1
112
2
1
2
1
24
Xuzhou
Suqian Yancheng
Huaibei
Hefei
Huai’an TaizhouYangzhou
Danyang
Nanjing
LiyangKunshan
Shanghai
1
Changzhou
11
Nantong
1
YunnanProvinceKunming
ShaanxiProvinceXi’an
JiangsuProvince
AnhuiProvince
Shanghai
1
Total 34
No. of Stores
Department Store 18
Lifestyle Center 16
1
3
13 13
By the end of 2017, Golden Eagle will have 34 stores over China, with GFA of 2.9 million sq.m.
11
1
1
Suzhou
1
Ma’anshan
1
1Chuzhou
1
Our Future Network
sq.m.
2.1M
0.8M
2.9M
1
1
1
20 18
8 16
No. of Stores
No. of Stores
2834
Present Future
• Liyang Store
• Xuzhou People
Square Store
• Kunming Nanya
Store (to be closed on
31 Aug 2015)
• Yancheng Outlet
Store
• Changzhou
Wujin Store
2011
21
Growing Presence in the PRC
* Nanjing Xinjiekou Store, together with the additional area of 81,098 sq.m., was upgraded to a lifestyle center in April 2014
• Kunming
Lifestyle
Centre
• Nanjing
Zhujiang
Store
• Nanjing
Xinjiekou
Store
• Nantong
Store
• Yangzhou
Store
• Yangzhou
Jinghua
Store
• Shanghai
Store
• Nanjing
Hanzhong
Store
• Nanjing
Xianlin Store
1996 2000 2001 2002 2003 2004
• Suzhou
Store (closed in
Feb 2013)• Xuzhou
Store
2005 2006
• Xi’an
Gaoxin
Store
• Taizhou
Store
2007 2008
• Huai’an
Store
• Yancheng
Lifestyle
Center
20092010
1997-
1999
• Hefei
Dadongmen
Store(suspended in
May 2015)
• Hefei
Baihuajing
Store (suspended in
May 2015)
• Anhui
Huaibei Store
2012201320142015
• Hefei Suzhou
Road Store
• Changzhou
Jiahong Store
• Xi’an Xiaozhai
Store (suspended in Oct
2014)
• Suqian Store
• Nanjing Xinjiekou
Lifestyle Center
• Yancheng
Julonghu
Lifestyle Center
• Nantong
• Lifestyle Center
*• Danyang
Lifestyle Center
• Kunshan
Lifestyle Center
• Jiangning
Lifestyle Center
• Xi’an
Guomao
Store(closed in
Oct 2010)
The Group’s total GFA as at 24 August 2015 was 1,656,447 sq.m.
Out of 28 operating stores, 8 stores are in the format of lifestyle center
22
Self-owned properties in prime locations account for 56.4%* of our GFA
51.3% of our GFA is in the lifestyle center format
Self Owned Properties
Owned-to-leased GFA ratio
28.1%*Leased from
related parties
56.4 %*Owned15.5%*
Leased from independent 3rd parties
Store
(in operation)Owned / Leased GFA (sq. m.)
15 Anhui Huaibei Leased 34,714
16 Hefei Suzhou Road Leased 45,690
17 Changzhou Jiahong Owned / Leased 18,362 / 33,458
18 Suqian Owned 65,410
19 Liyang Owned / Leased 53,469 / 18,355
20Xuzhou People’s
SquareOwned 37,768
21 Kunming Nanya Leased 36,870
22 Changzhou Wujin Leased 55,200
23 Yancheng Outlet Leased 18,377
24 Yancheng Julonghu # Leased 110,848
25 Nantong(lifestyle)# Owned 94,700
26 Danyang # Leased 52,976
27 Kunshan # Owned 118,500
28 Jiangning # Leased 144,710
Total 1,656,447
Store
(in operation)Owned / Leased GFA (sq. m.)
1 Nanjing Xinjiekou # Owned / Leased 85,303 / 29,242
2 Nantong Owned 9,297
3 Yangzhou Owned / Leased 37,562 / 3,450
4 Xuzhou Owned 59,934
5 Xi’an Gaoxin Owned 27,287
6 Taizhou Owned 58,374
7 Kunming # Owned 116,817
8 Nanjing Zhujiang Leased 33,578
9 Huai’an Owned 55,768
10 Yancheng # Owned 95,904
11 Yangzhou Jinghua Leased 29,598
12 Shanghai Leased 19,668
13 Nanjing Hanzhong Leased 12,462
14 Nanjing Xianlin Leased 42,795
# In the format of lifestyle center* As a percentage of total GFA (sq. m.) as at 24 August 2015
23
Category1H2015 GSP
Contribution
1H2014 GSP
Contribution(Restated)
(+/- )
% pointsTop Performing Brands
Apparel & Accessories 49.4% 49.5% -0.1
Gold, Jewellery and
Timepieces 18.4% 20.8% -2.4
Cosmetics 8.8% 8.6% +0.2
Outdoors and
Sportswear5.6% 4.5% +1.1
Electronics and
Appliances 4.8% 4.3% +0.5
Tobacco and Wines,
Household and
Handicrafts
3.9% 4.5% -0.6
Children’s Wear and
Toys 3.1% 2.6% +0.5
Supermarket and
Others6.0% 5.2% +0.8
Merchandise Mix in 1H2015
Offer a wide range of mid-to-high-end merchandises to meet the “one-stop
shopping” needs of our customers
Merchandising Offering
A broad and growing VIP customer base continued to strengthen customer loyalty to pave way for long-term growth
* As at 30 June 2015
VIP members % of Total GSP
63% 63% 62%58% 56% 56% 56%
0%
30%
60%
0
400,000
800,000
1,200,000
1,600,000
2,000,000
2009 2010 2011 2012 2013 2014 1H2015
VIP consumption
A Broad VIP Customer Base
Over 1,910,000 members*
VIP consumption accounted for 55.6% of total GSP in 1H2015
2 types:
i) G. Club: Platinum and Gold, application and renewal based on spending
ii) G. Point: Pre-VIP, free to apply and point awards only
Point awards, exclusive benefits
Introduced co-branded credit cards with different banks
24
Chain StoreYears intooperation
Retail OFA(sq.m.)
Lifestyle OFA(sq.m.)
Total OFA(sq.m.)
1H2015 Sales
(RMB'M)
SSSG(%)
1H2015 ASP
(RMB)
1H2014 ASP
(RMB)
1Nanjing XinjiekouLifestyle Center
19 57,545 23,064 80,609 1,576 6.3% 1,406 1,395
2 Nantong 14.5 5,689 68 5,757 98 -31.2% 1,001 1,061
3 Yangzhou 13.5 27,724 1,157 28,881 801 -5.8% 1,122 1,047
4 Xuzhou 11.5 37,133 6,102 43,235 891 -4.9% 965 980
5 Xi'an Gaoxin 9 19,282 1,435 20,717 497 -6.6% 1,227 1,200
6 Taizhou 8.5 32,170 8,708 40,878 416 -1.4% 871 851
7Kunming
Lifestyle Center8 30,993 47,046 78,039 355 13.2% 893 934
8 Nanjing Zhujiang 7.5 20,124 6,383 26,507 243 -27.1% 744 842
(1) (2) (3) (3)
(4) (4)
(5) (5)
25
The leading stylish premium department store chain in second-tier cities, catering for the mid-to-high-end retail market
(1) As at 30 June 2015(2) Retail OFA of 814,226 sq.m., Lifestyle OFA of 330,366 sq.m. and total OFA of 1,144,592 sq.m. as at 24 August 2015(3) Excluding supermarket sales. Same store ASP RMB877 (2014: RMB871) 0.7%(4) Including sales contribution from 81,098 sq.m. additional GFA soft-opened in 26 April 2014(5) Subway constructions during the period under review which are expected to be completed in 2015
Store Sales
25
26
Chain StoreYears intooperation
Retail OFA(sq.m.)
Lifestyle OFA(sq.m.)
Total OFA(sq.m.)
1H2015 Sales
(RMB'M)
SSSG(%)
1H2015 ASP
(RMB)
1H2014 ASP
(RMB)
9 Huai'an 6.5 27,901 5,799 33,700 253 1.4% 870 826
10Yancheng
Lifestyle Center6.5 43,940 15,907 59,847 622 -1.0% 1,007 911
11Yangzhou Jinghua
6 18,468 748 19,216 279 18.2% 678 576
12 Shanghai 6 1,614 0 1,614 45 -59.6% 5,806 3,112
13Nanjing
Hanzhong6 9,799 429 10,228 145 9.3% 396 388
14 Nanjing Xianlin 5.5 29,925 3,565 33,490 377 8.0% 481 454
15 Anhui Huaibei 4.5 22,473 5,714 28,187 185 9.2% 618 611
16Hefei Suzhou
Road4.5 25,535 7,160 32,695 80 -28.3% 719 732
17Changzhou
Jiahong4 23,310 11,389 34,699 34 -37.9% 441 568
18 Suqian 3.5 40,056 11,198 51,254 229 28.3% 656 614
(1) (2) (3) (3)
Store Sales (Cont’d)
(1) As at 30 June 2015(2) Retail OFA of 814,226 sq.m., Lifestyle OFA of 330,366 sq.m. and total OFA of 1,144,592 sq.m. as at 24 August 2015 (3) Excluding supermarket sales. Same store ASP RMB877 (2014: RMB871) 0.7%(6) Store closed for major revamp since 30 May 2014(7) Due to unsatisfactory property condition, GFA was reduced from 59,906 sq.m. to 45,690 sq.m. since Oct 2014
(6) (6)
(7) (7)
27
Chain StoreYears intooperation
Retail OFA(sq.m.)
Lifestyle OFA(sq.m.)
Total OFA(sq.m.)
1H2015 Sales
(RMB'M)
SSSG(%)
1H2015 ASP
(RMB)
1H2014 ASP
(RMB)
19 Liyang 3.5 30,260 16,411 46,671 113 5.6% 608 548
20Xuzhou People's
Square3.5 15,508 11,256 26,764 148 8.9% 706 638
21 Kunming Nanya 3.5 24,665 4,485 29,150 72 -12.2% 793 895
22 Changzhou Wujin 3 32,322 9,592 41,914 86 -22.3% 659 633
23 Yancheng Outlet 3 14,521 632 15,153 71 8.0% 351 331
24YanchengJulonghu
Lifestyle CenterSept 2014 52,883 29,865 82,748 164 - 766 -
25Nantong
Lifestyle CenterDec 2014 35,738 10,291 46,029 162 - 753 -
26Danyang
Lifestyle CenterJan 2015 28,972 11,528 40,500 85 - 643 -
27Kunshan
Lifestyle CenterJan 2015 37,981 41,798 79,779 142 - 743 -
28Jiangning
Lifestyle CenterJul 2015 67,695 38,636 106,331 - - - -
(1)(2) (3) (3)
(1) As at 30 June 2015(2) Retail OFA of 814,226 sq.m., Lifestyle OFA of 330,366 sq.m. and total OFA of 1,144,592 sq.m. as at 24 August 2015(3) Excluding supermarket sales. Same store ASP RMB877 (2014: RMB871) 0.7%
Store Sales (Cont’d)
Upcoming New Stores
29
Upcoming store GFA (sq.m.) Owned / Leased 2H2015 2016 and onwards
1 Ma’anshan, Anhui @ Leased 87,568 (29 Aug 2015)
2 Suzhou 2, Jiangsu@ Owned 176,764
3 Hexi, Nanjing @ Owned / Managed 160,000 / 114,000
4 Xianlin Additional, Nanjing @ Owned 168,900
5 Xuzhou Additional, Jiangsu @ Owned / Managed 48,800 / 10,000
6 Jiangdu, Yangzhou (JV) @ Owned 250,000
7 Changzhou 3, Jiangsu Leased 60,000
8 Xi’an 3, Shaanxi Leased 62,500
9 Danyang Additional, Jiangsu @ Leased 58,100
10 Chuzhou, Anhui Managed 50,000
Total 1,246,632 87,568 1,159,064
% Year End GFA Increase1,656,447
(as at 24 Aug 2015)5.3% 66.5%
% of Owned Property (GFA) 53.6% 59.9%
Estimated Max Capex. (RMB)1.5 billion
for full year
Around 1.5 billion
each year
#
&
^^
@ To be in the format of comprehensive lifestyle center (全生活中心)# 3 years managed contract from day of operation with first right to lease& Including car parking spaces of 44,741 sq.m..^^ Excluding the investment costs for joint venture companies.
Retail EBIT
31
Gross Sales Proceeds (GSP)
Concessionaire Sales
1H2014(restated)
(+/-)Six months ended 30 Jun(RMB million)
Profit Attributable to Shareholders
EPS – Basic (RMB)
1H2015
Direct Sales
7,266.6
1,005.7
1,324.3
8,183.7
7,150.5
953.4
1,281.6
+2.6%
+1.6%
+5.5%
+3.3%
Retail EBITDA
611.3 696.4 -12.2%
586.3
0.330
483.3
0.265
+21.3%
+24.5%
8,398.7
Gross Profit
782.7 809.7 -3.3%
Rental Income 108.2 64.5 +67.7%
Automobile Services Fees 15.3 +18.9%18.2
1H2015 Profit Analysis
Dividend (RMB) 0.110 0.088 +25.0%
3232
(+/- )% points
Six months ended 30 Jun(%)
1H2015
Gross Margin 18.3% +0.118.4%
1H2014(restated)
1H2015 Profit Analysis
Concessionaire rate from concessionaire sales(new store dilution)
18.0% -0.917.1%
Merchandise sales margin(increase controllable merchandise sales)
17.9% +2.620.5%
Automobile sales margin 1.6% 2.8% -1.2
3333
(+/- )1H2015
Retail EBIT 696.4 -85.1611.3
1H2015 Profit Analysis
Six months ended 30 Jun(RMB million)
- 4 stores opened since Sept 2014 -49.6
1H2014(restated)
-2.6
-11.2
- Others, including investments in various lifestyle functions, omnichannel developments and controllable merchandise initiatives
-21.7
- Initial start up costs for 2 new stores in 2H2015
- 3 2014 and 2015 suspended stores and 7 loss making stores
34
Financial Position
Note 1: Cash and near cash represents bank balances and cash and various short-term bank related deposits, including investments in interest bearing instruments, structured bank deposits and restricted cash
Note 2: Gearing ratio = total borrowings / total assets
As at 30 Jun 2015
As at 31 Dec 2014
(restated)RMB million
Total Assets
Total Liabilities
Net Assets
Short-term Loans
Gearing Ratio (note 2)
16,811.0 16,620.0
11,401.4 11,175.1
5,409.6 5,444.9
643.8 1,013.8
39.6% 33.4%
Total Borrowings 6,656.3 5,546.0
Cash and Near Cash (note 1) 4,325.4 5,429.6
Net Debts (2,330.9) (116.4)
10-Year Senior Notes 2,419.3 2,419.6
Syndicated Loans 3,593.2 2,112.6
35
Net cash used in operating activities
1H2014vs.
FY2013(restated)
Net (decrease) increase in cash and cash equivalents
1H2015vs.
FY2014
- Changes in short-term bank related deposits
(542.4)
794.9
(905.1)
(327.0)
828.9
1,313.5
(574.8)
Net cash generated from (used in) financing activities
317.5 (178.0)
(325.3) 323.9
(100.4)
Net cash (used in) generated from investing activities
- Capex for the period
Six months ended 30 Jun(RMB million)
Cash Flow Statement
- Increase in net bank borrowings 1,063.9 582.1
- Operating cash flows before working capital movements 812.3889.1
- Decrease in trade and other payables (553.4)(421.7)
- Dividends paid to owners of the Company
(349.4) (305.2)
- Interests in joint venture and associates (542.3)
- Repurchase of own shares
(268.5) (364.9)
Half Year vs. Full Year Balance Sheet
(41.4)
37
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the Company’s activities at the date of the presentation. It is information given in summary
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